Current Events > GameStop Sales Continue To Plummet In Its Third Quarter

(+) Yeah! (+)

https://www.fool.com/investing/2019/12/14/gamestops-q3-was-just-as-bad-as-you-thought-it-wou.aspx

No one should have expected GameStop's third-quarter earnings report to contain any good news, as there are no catalysts for growth, and yet since mid-August the video game retailer's stock has doubled in value. Now that its earnings are out and they're just as bad as imagined, the market seems shocked -- shocked! -- at the outcome, as investors sent GameStop's stock 20% lower in after-hours trading. GameStop reported third-quarter currency-adjusted revenue tumbled 24.7% to $1.4 billion as hardware sales plummeted over 45%, software sales were cut by a third, and both accessories and pre-owned games were each down 13% for the period. Once again, the only segment that grew was its collectibles business: Sales increased just over 4% from last year. And GameStop has to be really upset Disney made a rare miscalculation about the popularity of its new Star Wars TV series, The Mandalorian, because there are no Funko POP "Baby Yoda" action figures available for Christmas. The figurine is available for pre-order, but it won't be shipped till the spring. GameStop has had a long-standing relationship with Funko and its POP figurines are a big part of the retailer's collectibles business, so this segment could reasonably see a nice, well, pop itself in the fourth quarter if demand for the Baby Yoda dolls is as great as many believe.

Take note, though: CEO George Sherman warns the retailer's more important game console business doesn't look hopeful for the immediate future as the useful life of existing game systems winds down. He said the cause of GameStop's dismal earnings was "the unprecedented decline in new hardware sales seen across the market as the current generation of gaming consoles reach the end of their lifecycle and consumers delay their spending in anticipation of new hardware releases." Worse, he doesn't see the retailer's fortunes improving until the fourth quarter of 2020 when the newest models from Microsoft and Sony get launched. There was no reason for GameStop's stock to rise like it did over the past few months, as there was never any hope of improvement, and the third-quarter report shows there was reason to be skeptical. Now investors have been put on notice a recovery is unlikely until late next year.

RIP Gamestop

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https://www.youtube.com/watch?v=GibiNy4d4gc

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They'll be fine. Everyone still buys video games.

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Duncanwii posted...

They'll be fine. Everyone still buys video games.

Here's the thing, if a business continues to lose revenue it will eventually fail

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MC_BatCommander posted...

Here's the thing, if a business continues to lose revenue it will eventually fail

Tell that to USPS

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Oh no now where will suckers get ripped off for their used games and "rewards" cards. Lmfao

wtf the GameStop stock yields 31% dividends??

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Microsoft and Sony sure did no favours with console sales by announcing the PS5 and Series X so early.

Like the Xbox One was only announced like 6 months before it was released.

They announced the Series X a full year.
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Bio1590 posted...

Microsoft and Sony sure did no favours with console sales by announcing the PS5 and Series X so early.

Like the Xbox One was only announced like 6 months before it was released.

They announced the Series X a full year.

So?

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And GameStop has to be really upset Disney made a rare miscalculation about the popularity of its new Star Wars TV series, The Mandalorian, because there are no Funko POP "Baby Yoda" action figures available for Christmas. The figurine is available for pre-order, but it won't be shipped till the spring. GameStop has had a long-standing relationship with Funko and its POP figurines are a big part of the retailer's collectibles business, so this segment could reasonably see a nice, well, pop itself in the fourth quarter if demand for the Baby Yoda dolls is as great as many believe

Assuming this is actually true, nobody is gonna care by Spring about baby Yoda lol, it's a fad

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Haven't shopped at Gamestop every since they sold me a rewrap game as new. Like at least clean the sticker off the case if you're gonna rewrap it.

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AvantgardeAClue posted...

And GameStop has to be really upset Disney made a rare miscalculation about the popularity of its new Star Wars TV series, The Mandalorian, because there are no Funko POP "Baby Yoda" action figures available for Christmas. The figurine is available for pre-order, but it won't be shipped till the spring. GameStop has had a long-standing relationship with Funko and its POP figurines are a big part of the retailer's collectibles business, so this segment could reasonably see a nice, well, pop itself in the fourth quarter if demand for the Baby Yoda dolls is as great as many believe

Assuming this is actually true, nobody is gonna care by Spring about baby Yoda lol, it's a fad

It is true, legitimately none of the official "Baby Yoda" merchandise is supposed to ship until April or May. I have no idea what the fuck Disney was thinking, because there's other merchandise for the show out already (like, Funko Pops of EVERYONE ELSE)
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